Filinvest Land aims to raise ₧10 billion via retail bond float


Gotianun-led property developer Filinvest Land Inc. (FLI) on Wednesday said it filed with the Securities and Exchange Commission (SEC) its registration statement for its P10-billion fixed-rate peso denominated retail bond float.

The company said it will sell some P8 billion in debt and P2 billion as its over-subscription option, with maturity periods ranging from four to six years.

The said bond float will be the second tranche out of its P30-billion shelf registration.

The company issued in November 2020 the first tranche of the bonds worth P8.1 billion.

The company mandated BDO Capital and Investment Corp., BPI Capital Corp., China Bank Capital Corp., East West Banking Corp., First Metro Investment Corp., RCBC Capital Corp. and SB Capital Investment Corp. as its joint lead underwriters and bookrunners for the offer.

RCBC Trust and Investments Group shall serve as the trustee and Philippine Depository and Trust Corp. as registrar and paying agent.

The bonds shall be listed on the Philippine Dealing and Exchange Corp. for trading.

For the first half, FLI’s income fell 22 percent to P1.87 billion from last year’s P2.41 billion as its rental, such as office and shopping malls, remained weak.

The company said its revenues fell 10 percent to P8.31 billion from last year’s P9.3 billion due to lower revenues generated from its leasing business, which were tempered by higher real estate sales revenues from its residential business.

Real estate sales rose by 10 percent to P5.03 billion from last year’s P4.55 billion primarily due to higher construction percentage of completion achieved during the second quarter.

Rental and related services, meanwhile, plunged by 27 percent to P2.86 billion from last year’s P3.91 billion due to the decline in mall and office revenues as a result of lower occupancy and rental concessions provided primarily to mall and retail tenants.

“Reduced occupancy was caused by the pre-termination of leases by POGO [Philippine offshore gaming operators] tenants. The group expects new BPO [business process outsourcing] tenants to lease out the vacated office spaces in the remainder of the year,” it said.

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